A Company Was Studying the Demographics of Their Customers

question 45

Multiple Choice

A company was studying the demographics of their customers. As part of the study they collected
The following variables: gender, marital status, credit rating (low, medium, high) , annual income, and
Age) Label the variable age as qualitative or quantitative, discrete or continuous, and nominal,
Ordinal, interval, or ratio.

• A) qualitative, discrete, nominal
• B) qualitative, continuous, Ordinal
• C) quantitative, discrete, nominal
• D) quantitative, continuous, ratio

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Definitions:

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.

Manufacturing Overhead

These are indirect factory-related costs that are incurred when producing a product, such as utility costs, depreciation, and salaries of supervisors.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process.

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined overhead rate.